身价110亿，东北富豪要IPO

Core Viewpoint - The Chinese beauty brand Chando, backed by the Zheng family, is preparing for an IPO on the Hong Kong Stock Exchange, with a valuation of approximately 71.4 billion yuan after recent investments from global beauty giant L'Oréal and Capital Group [2][3][8]. Company Overview - Chando, founded in 2001, has grown into a major player in the beauty industry, achieving annual revenues exceeding 4.6 billion yuan [2][4]. - The company is primarily controlled by the Zheng siblings, who hold over 87% of the shares, with Zheng Chunying's personal wealth reaching 11 billion yuan [2][3]. - The brand's marketing slogan, "You are already beautiful," reflects a shift in consumer culture towards confidence and self-identity [5]. Business Development - Zheng Chunying transitioned from a civil servant to an entrepreneur, initially exploring various business ventures before establishing Chando in Shanghai [4]. - The brand's growth strategy involved a gradual expansion from lower-tier cities to higher-end markets, leveraging television advertising and sponsorships, such as with the Chinese diving team during the London Olympics [6][8]. - Chando has maintained a family-oriented management style, which has contributed to its resilience during industry changes [6][8]. Market Context - The Chinese beauty market is projected to reach 1,073.8 billion yuan by 2024, with significant shifts in competition dynamics, including the rise of domestic brands and the decline of foreign brands in the high-end segment [7][8]. - The company faces pressure to adapt to changing consumer preferences and market conditions, necessitating a structural upgrade in branding, research and development, and distribution strategies [7][8]. Financial Position - Chando recently completed a financing round of 742 million yuan, with L'Oréal contributing 442 million yuan, enhancing its capital base and market credibility [8]. - The company's online sales have surged, with online revenue accounting for 68.8% of total sales by 2024, indicating a strong digital presence [8]. - Despite a high gross margin of over 70%, the company has seen a 37.1% decline in net profit due to increased marketing expenditures [9][10]. Governance and Challenges - The company's governance structure is characterized by family control, which can lead to efficient decision-making but may raise concerns among investors regarding minority rights and transparency [10][11]. - Chando's reliance on its flagship brand for over 90% of revenue poses a risk if market dynamics shift or consumer interest wanes [9][10]. - The company must navigate challenges related to research and development investment and regulatory scrutiny over packaging practices as it approaches its IPO [10][11].